Gazprom signs five-year deal to supply sulphur to PhosAgro

7:16 AM, 18th December 2015

MOSCOW, RUSSIA: Gazprom Sulphur Ltd said that it signed a five-year contract with PhosAgro for the supply of liquid sulphur, based on market prices, to PhosAgro-Cherepovets and the Balakovo branch of Apatit JSC (primary assets of the company), for the period from 1 January 2016 to 31 December 2020.

This agreement will enable PhosAgro-Cherepovets and the Balakovo branch of Apatit to fully meet their demand for liquid sulphur, which is a raw material used in the production of mineral fertilizers. These facilities’ demand for liquid sulphur has grown following increases in production capacities.

“The parties have agreed to set the price of sulphur based on the principles of transparency and a balance of the interests of all sides. In order to increase the volume of liquid sulphur supplies, PhosAgro has also expressed its willingness to allocate additional tanker cars to transport the liquid sulphur that its production facilities will use. This agreement will enable long-term production planning and predictable delivery volumes for PhosAgro’s plants. It will also decrease the overall level of tension surrounding liquid sulphur supplies that is currently affecting the market due to lack of appropriate railcar capacities,” said Andrey Lazukov, CEO, Gazprom Sulphur.

“We are pleased to restart our partnership with Gazprom Group companies and hope that they will be long-term and constructive in all areas of doing business,” said Andrey Guryev, CEO of PhosAgro.